What does maintain mean in a lease?
Unless you and the landlord decide otherwise, you will be expected to keep nonstructural elements of your rented space in good shape. This means that cleaning and repairs to carpets, lighting, wall coverings, bathroom and kitchen fixtures, and so on will be your responsibility.
What are the most important clauses to include in a lease contract and why?
Severability Clause This is one of the most important clauses, and you must include it in your document to avoid future issues with your lease. A severability clause states that if any portion of your lease is ruled non-applicable by the court, the rest of the lease agreement is going to remain valid.
Which of the following is a major type of commercial lease?
Gross Lease Gross leases are most common for commercial properties such as offices and retail space. The tenant pays a single, flat amount that includes rent, taxes, utilities, and insurance. The landlord is responsible for paying taxes, utilities, and insurance from the rent fees.
What are typical clauses aspects of a commercial lease?
Another key clause in a commercial lease agreement is the term and renewal. The term clause defines the duration of the lease, usually in months or years. It also indicates when the lease will start and end, and whether there are any options to extend or terminate the lease early.
Which of the following should be covered in a commercial lease agreement?
Base rent and monthly rent The contract must also explain if the rent includes or excludes property taxes, insurance, maintenance, utilities, and additional costs. If the rent is exclusive of these charges then the owner must specify the amount that the tenant needs to pay in regards to these expenses.
What is a common provision of a commercial lease?
Other common and important clauses in business leases include Option to Renew or Sublet (and other Flexibility Clauses), Breaking the Lease, Disputes, Attorney Fees, Foreclosures, Condemnations, and Guarantors.
What is an example of a commercial lease buyout clause?
For instance, a commercial lease buyout clause example might say something such as, Lessee will have the right after the first (1st) lease year to buyout the Lease upon Ninety (90) days written notice and payment of One-Hundred Thousand Dollars ($100,000.00) to Lessor.
What are options in a commercial lease?
In commercial real estate terms, an Option is a right granted to either the tenant or the landlord. Options are typically granted via lease documentation and include renewal, expansion, contraction, termination, rights of first offer, rights of first refusal and purchase options.
